Animal Feed and Pet Food

Executive Summary: Payment Behaviour Analysis for the Animal feed and pet food Sector

An extensive review of payment practices within the Animal feed and pet food sector, based on a sample of 31 companies, reveals a highly consistent yet moderately sluggish payment culture. To properly analyse the financial health of this sector, one must look at the central tendency metrics. The data indicates a remarkably tight alignment between the average payment time of 39.9 days and the median of 40 days. This convergence suggests a normal distribution where the behaviour of the majority of companies clusters closely around the mean, free from the skewing influence of extreme outliers. The standard deviation of 13.3 days further corroborates this consistency, indicating that payment terms are relatively standardised across the sector, with few companies deviating significantly from the established norm.

When we organise the companies into specific performance bands, it becomes evident that the Animal feed and pet food sector does not favour rapid settlement. Only 19.4% of the organisations analysed fall into the 'Fast' category (0-30 days). Instead, the centre of gravity for this sector lies firmly within the 'Moderate' (31-45 days) and 'Slow' (46-60 days) bands, which collectively account for 77.4% of the sample. The interquartile range (IQR) of 16 days—spanning from 33 days at the 25th percentile to 49 days at the 75th percentile—reinforces this observation. Suppliers engaging with this sector should realise that whilst terms may be stated as 30 days, the operational reality typically involves a delay of an additional 10 to 20 days.

Despite the tendency toward moderate delays, the sector displays a stable risk profile. Notably, there are zero companies in the 'Critical' category (90+ days), and the slowest payer recorded sits at 63 days, which is manageable compared to more volatile industries. However, suppliers must remain vigilant; whilst no companies are critically delinquent, the performance breakdown reveals that 32.5% of payments are classified as late. Furthermore, whilst transactional data shows 41.6% of invoices are paid within 30 days, the company-level data suggests that consistent early payment is a trait amongst a minority of firms. The disparity between the fastest payer (12 days) and the slowest (63 days) highlights that credit control procedures still play a vital role in securing timely funds.

Geographically, the sample is distributed with a notable concentration in Yorkshire and The Humber and the East of England, which collectively house nearly half of the analysed entities. In conclusion, the Animal feed and pet food sector presents a profile of reliability but lacks speed. Creditors should anticipate a cash flow cycle hovering around the 40-day mark. Whilst the risk of severe default or critical delay appears minimal, the prevalence of late payments suggests that businesses supplying this sector should factor a buffer period into their cash flow forecasting to accommodate the prevailing payment culture.